Goodman Group announced its results for the full year ended 30 June 2019. The Group delivered operating profit of $942 million, up 11.4% on FY18, and operating earnings per share (EPS) of 51.6 cents , up 10.5% on FY18. Statutory profit was up 48% to $1,628 million.
For FY20, the Group is forecasting operating profit of $1,040 million up 10.4% with operating EPS of 56.3 cents per share, up 9% on FY19.
”Our continued strategic focus on owning, developing and managing high-quality industrial properties for customers in key urban centres is delivering positive results, with operating and statutory profit up significantly,” said Greg Goodman, Group Chief Executive Officer.”
”The evolution of our customers’ supply chains is continuing at pace, as growing consumer expectations and demand, require them to be faster and more agile.”
”Our development workbook is consequently growing strongly, with work in progress at $4.1 billion and expected to reach around $5 billion in the next 12 months. We have raised and deployed more capital in Partnerships to fund developments, which combined with solid property fundamentals, has led to robust Partnership returns, averaging 16% for the year.”
”The Group and Partnerships saw $3.8 billion in valuation gains, contributing to substantial growth in assets under management which now sits at $46 billion. This is expected to increase steadily through development completions.”
Commenting on the outlook for the Group, Greg Goodman said, “There’s no denying that structural changes are continuing to drive the momentum for improving supply chain efficiency in our customers’ businesses.
The deliberate urban logistics concentration of our portfolio is the critical factor which will support our customers’ supply chain evolution over the next five to ten years; generate resilient cash flows; and provide opportunity for higher and better uses in the long term.
Our customers’ requirement for well-located, high-quality industrial real estate continues to grow and we have the specialist management and infrastructure to meet this demand, as we continue to incrementally acquire sites in high barrier to entry markets around the world.
While the market environment for industrial real estate looks strong, we remain prudent in managing our capital. We will continue to maintain low leverage, deploy our capital efficiently within Partnerships and look to drive sustainable growth over the long term.
For FY20, we forecast operating profit of $1,040 million (+10.4% on FY19), operating EPS of 56.3 cents (+9% on FY19) and distribution of 30.0 cents per security.
We set our target annually and review them regularly. Forecasts are subject to there being no material adverse change in market conditions or the occurrence of other unforeseen events.”